Saudi Arabia: Unlocking Fintech Potential Across the Middle East

The Kingdom of Saudi Arabia (KSA) achieved an annual GDP of $1.083 trillion in 2024, a 3.3% increase from the previous year. This increase made it the second-largest economy in the Middle East and North Africa (MENA). Central to its expansion has been a strategic transition from an oil-centric economy to diverse non-oil sectors such as sports, technology, tourism, and financial services.

This shift has propelled the country to emerge as a dynamic digital hub, underpinned by rapidly developing digital infrastructure. The country’s broadband connectivity is among the highest in the world, with a 99% digital penetration rate. Its substantial $54.9 billion Information and Communications Technology (ICT) sector demonstrates an intensive investment in digital transformation, evidenced by the addition of 37,000 new telecommunication towers since 2017. 

In this article, we’ll examine:

• Saudi Arabia’s economic landscape
• Saudi Vision 2030
• Advancing digital payments in Saudi Arabia
• The rise of digital wallets in Saudi Arabia
• Cross-border payments in Saudi Arabia
• Transitioning beyond oil-based industries

Saudi Arabia’s economic landscape

Saudi Arabia stands as the largest economy in the Gulf Cooperation Council (GCC) and a major economic force in the Middle East. With a population exceeding 36 million, the Kingdom’s economy is driven by key sectors such as oil and gas, petrochemicals, mining, manufacturing, construction, retail, tourism, and financial services. With tax-friendly MNC policies, the Kingdom has successfully positioned itself as an important destination for financial giants like JP Morgan Chase, HSBC, and other global financial institutions, cementing Saudi Arabia’s role as a promising global financial centre.

After a slight GDP dip of 0.8% in 2023, Saudi Arabia bounced back stronger in 2024 with 3.3% growth, driven largely by a 4.2% surge in non-oil sectors. This signals a clear shift in the Kingdom’s economic engine: away from hydrocarbons, and towards a future powered by innovation, technology and services.

A key part of this evolution is the digital economy. With strategic investments in fintech, e-commerce and mobile payments, Saudi Arabia is on track to grow its digital economy to $87 billion by 2025 and $133 billion by 2030.

It’s all part of Vision 2030, the Kingdom’s blueprint for a diversified, digitally empowered economy that positions Saudi Arabia as a leading tech hub in the region and beyond.

Saudi Vision 2030

Saudi Vision 2030 is a strategic framework aimed at reducing the Kingdom’s dependence on oil while driving economic diversification. The initiative places strong emphasis on digital transformation and financial inclusion, with the goal of fostering a vibrant society and a dynamic economy.

Key pillars of Vision 2030 include:

• Economic diversification and reduced oil dependency: Saudi Arabia is committed to broadening its revenue base by investing in sectors such as technology, tourism, and entertainment, thereby lessening its reliance on oil exports.
  
• Focus on digital transformation and financial inclusion: The Vision prioritises the adoption of digital technologies to accelerate economic development. A cornerstone of this effort is modernising the financial sector through the promotion of digital payments and expanding access to financial services for both individuals and businesses.

Central to Saudi Vision 2030 is the Kingdom’s development of digital finance infrastructure rooted in digital payments and e-commerce. E-payments have surged to 79% of all retail transactions in the nation in 2024, a 12% increase over 2023. Vision 2030 promises sweeping changes not just in the nation’s economic and technological development, but for the entire Middle East.

Advancing digital payments

Saudi Arabia’s journey toward a cashless society is well ahead of schedule. As part of Vision 2030, the Kingdom aimed to reach a 70% non-cash transaction rate by 2025, a target it achieved two years early in 2023 and underscoring the pace of its digital transformation.

Several factors have accelerated this progress: a young, mobile-first population with a 97% smartphone penetration rate and 71% under the age of 35, robust digital infrastructure, and a policy environment designed to foster innovation. Programmes like FinTech Saudi have played a critical role in nurturing the ecosystem and driving adoption across both consumers and businesses.

Another key driver has been the rapid adoption of real-time payment (RTP) systems, which offer instant, 24/7 settlement for both individuals and businesses. Coupled with Mada, the Kingdom’s domestic payment network, these systems have made digital payments faster, more secure and widely accessible, accelerating the shift away from cash and strengthening confidence in digital financial services.

Fintech momentum also continues to build. The number of fintech companies operating in Saudi Arabia doubled between 2022 and 2023, highlighting the Kingdom’s growing role as a launchpad for digital financial services in the region.

The rise of mobile wallets in Saudi Arabia

Saudi Arabia’s mobile wallet landscape is diverse, with solutions designed to meet a wide range of needs. National platforms facilitate contactless payments linked to local bank cards, ensuring broad acceptance and ease of use. Other wallets enable consumers to pay bills, transfer money, and make in-app purchases seamlessly. Meanwhile, international solutions are increasingly gaining traction, providing secure and convenient payments at contactless terminals across the Kingdom.

A growing number of mobile wallets in the Kingdom provide specialised capabilities, including prepaid card integration, Buy Now, Pay Later (BNPL) features and expanded financial services. According to Statista, around 90% of consumers used emerging payment methods like contactless wallets or money transfer apps in 2024. Increased security and the booming e-commerce market also play significant roles in this transformation. Digital wallets offer financial inclusion, increased convenience, greater transparency and control of money.

Cross-border payments in Saudi Arabia

Remittance flows remain a cornerstone of Saudi Arabia’s financial ecosystem, particularly outward remittances, driven largely by its sizeable expatriate population. In 2024, total outward remittances from the Kingdom reached $38.2 billion, a 14% increase from the previous year. 

This growth reflects increased employment opportunities, higher disposable incomes, and the growing reliability of fintech platforms that make it easier and safer to send money home. A 2024 study by IBS Intelligence also noted the rise of purpose-driven remittances, for specific needs such as education, healthcare, housing, or family support.

As the Kingdom prepares to host the FIFA World Cup in 2034, an expected influx of foreign workers is likely to further accelerate remittance volumes, highlighting the importance of fast, transparent, and cost-effective cross-border payment solutions.

This momentum strengthens the financial well-being of millions of households as well as driving broader financial inclusion, supporting Saudi Arabia’s vision for a more connected and inclusive digital economy.

Transitioning beyond oil-based industries

Saudi Arabia’s economic transformation is gaining momentum, with non-oil sectors like tourism, construction, and manufacturing driving sustained growth. In 2023, non-oil activities accounted for 50% of GDP, a record high reflecting the Kingdom’s commitment to diversifying its economy beyond oil-based activities. 

SAMA launched its Open Banking Framework in 2022, first enabling Account Information Services (AIS), followed by the rollout of Payment Initiation Services (PIS) in September 2024. These regulatory pillars have laid the foundation for secure, API-based data sharing between banks and licensed fintechs, unlocking new digital products and creating greater transparency and consumer control.

The Open Banking Lab, established in 2023, has further accelerated this progress by allowing banks and fintechs to test and certify their services in a controlled environment. Open banking, in particular, is enabling more personalised, customer-centric offerings and creating new use cases across personal finance, digital lending, and payments.

The result: a surge in Sharia-compliant digital solutions, simpler licensing pathways, and stronger financial inclusion across the Kingdom. Undeniably, digital finance is a vital component in Saudi Arabia’s pursuit of economic excellence, deftly integrated with Vision 2030’s goal of economic diversification.

A notable trend contributing to this transformation is the rise of neobanks: fully digital banks offering app-based financial services without traditional physical branches. These institutions are thriving under SAMA’s supportive regulations and have become key players in improving accessibility and user experience for underserved segments. Their agility and tech-first models align perfectly with Saudi Arabia’s push toward financial inclusion and innovation.

A digital finance oasis in the Middle East

Saudi Arabia’s transformation into a digital finance hub is a driving force in reshaping the economic landscape of the MENA region. Guided by Vision 2030, the Kingdom has successfully diversified its economy, reducing dependence on oil through substantial investments in tourism, sports, and fintech. This strategic pivot, underpinned by advanced digital infrastructure, has established Saudi Arabia as a regional leader in digital innovation.

The rapid adoption of digital payments and mobile wallets highlights the Kingdom’s commitment to building a cashless society and promoting financial inclusion. Initiatives such as FinTech Saudi have fueled considerable economic growth. With a tech-savvy population, widespread broadband connectivity, and a supportive regulatory environment, Saudi Arabia is paving the way for a sustainable and prosperous future and driving continued expansion in digital finance.

Reinforcing this momentum, this year, Saudi Arabia will host Money20/20 for the first time, a landmark fintech event that signals the Kingdom’s elevated status as a regional fintech hub and a global destination for innovation in financial services.

Thunes’ footprint in Saudi Arabia

Thunes plays a pivotal role in shaping Saudi Arabia’s payments ecosystem. Through partnerships with leading players and innovative fintechs, we enable seamless cross-border payments to and from the Kingdom.

With an office established in Riyadh, Thunes continues to expand its capabilities and investment in Saudi Arabia as more fintechs, wallets, and partners in the Kingdom join our industry-leading Direct Global Network. Our Pay and Accept solutions empower banks, payment service providers, and mobile wallets to deliver efficient cross-border transactions and local collections, including real-time, 24/7 payouts to both bank accounts and wallets nationwide.

Operating in over 130 countries, Thunes supports more than 80 currencies and connects with 320 payment methods worldwide. Saudi Arabia’s commitment to financial inclusion and innovation has created a highly supportive environment for businesses and consumers, opening the door to greater economic opportunity.

Contact us to learn how you can leverage payments in Saudi Arabia to supercharge your business growth.